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The Guv’s embarrassing jobs creation press release

Posted By Rob Schofield On March 31, 2014 @ 3:50 pm In Uncategorized | Comments Disabled

jobseconomy [1]Don’t get us wrong; it’s almost always great whenever a new employer is creating jobs in North Carolina. And the phenomenon of politicians claiming credit for job creation is nothing new; everyone likes good news and wants to be around when it’s delivered.

That said, today’s press release from the office of Governor Pat McCrory [2] announcing the expansion of a plastics manufacturer in Henderson County borders on the ridiculous. This is from the release:

“Governor Pat McCrory and N.C. Commerce Secretary Sharon Decker announced today that Elkamet Inc. is expanding its North Carolina manufacturing operations in Henderson County.  The company plans to create 20 new jobs and invest more than $2.5 million over the next three years in East Flat Rock….

The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $24,000. The One NC Fund provides financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.  These grants also require and are contingent upon local matches. – See more at: http://www.governor.state.nc.us/newsroom/press-releases/20140331/plastics-manufacturer-expand-henderson-county#sthash.i1S6RWQw.dpuf

The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $24,000. The One NC Fund provides financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.  These grants also require and are contingent upon local matches.”

No, that’s not a misprint. The release is touting the creation of 20 jobs over three years at the cost of a goodly chunk of state and local change. That’s about one job every two months.

Now, again, this is is certainly fine news – especially given that it involves manufacturing. And the pay at the jobs is not terrible — about $33,000 per year or about $16 per hour. But is that really deserving of a press release or, perhaps more to the point, a government subsidy?

What’s next — a press release every time Starbucks opens a new store? Based on today’s precedent, that may not be such an outrageous question. As best as can be determined from a quick web search, the average outlet of the coffee giant employs around 25 employees — all of whom get to work a lot faster than three years.


Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org

URL to article: http://pulse.ncpolicywatch.org/2014/03/31/the-guvs-embarrassing-jobs-creation-press-release/

URLs in this post:

[1] Image: http://pulse.ncpolicywatch.org/wp-content/uploads/2011/12/jobseconomy.jpg

[2] today’s press release from the office of Governor Pat McCrory: http://www.governor.state.nc.us/newsroom/press-releases/20140331/plastics-manufacturer-expand-henderson-county

[3] Falling labor force continues to drive drop in unemployment rate : http://pulse.ncpolicywatch.org/2014/03/28/falling-labor-force-continues-to-drive-drop-in-unemployment-rate/

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